Chinese auto makers bet big on India story

Chinese auto makers bet big on India story

Increased investment by Chinese automobile manufacturers in the market here is likely to feature in Premier Wen Jiabao's talks with industry bodies on his visit to India.

Sources indicate apart from BYD Auto, which is known as Build Your Dreams, a well-known electric and hybrid car maker, Beiqi Foton, a leading commercial vehicle maker and many small and medium sized auto ancillary companies will be looking at making investments in the country.

China's largest commercial vehicle manufacturer, Beiqi Foton, is understood to be considering setting up a greenfield facility in India shortly.

Industry sources informed Foton Motors has already done a feasibility study for its foray into the Indian market.

Chinese auto makers bet big on India story

The company has made enquiries regarding growth prospects in the Indian commercial vehicle industry and has also held talks with components manufacturers to determine the supplier base available for manufacturing vehicles locally.

A final decision, however, has not been taken on whether the company would look at entering the country independently or through a joint venture.

Foton is likely to be the second Chinese automobile company to enter the Indian market after Shanghai Automotive Industry Corporation (SAIC).

SAIC, present through a partnership with General Motors in the Indian market, is working on introducing five new models in the country by 2013.